tv Bulls and Bears FOX Business May 24, 2015 8:00am-8:31am EDT
tables on a would-be carjacker. plus the number one reason to drink beer this week. union-backed protestors demanding $15 an hour and to unionize outside mcdonald shareholder meetings this week forcing the closure of one store until they left. mcdonald's already increased pay at stores they own to at least 10 bucks, so if this more about big labor wanting to super size its membership than workers' pay? i'm brenda butner. this is bulls and bears, we have gary smith, john layfield along with susan welch and naomi cotts. welcome, everyone. the union looking to bump up
people's pay? >> i wish we lived in the economy where people made $15 an hour that comes to $31,000 a year. in fact there are scads of kids graduating from college this month who will not make that much money. so i'm with warren buffett on this one. if the wages go up to $15 an hour there will be fewer people working and working fewer hours. i think that's a terrible price to pay for the political aspirations of these unions. and that's what they are, political aspirations on the backs of their members. and it is all about them saying that mcdonnalaldcdonald's is trying to maximize their profits. >> if the unions weren't just protesting the fact of the wage increase protest, they were protesting the fact that shareholders are using their profits to buy back shares for immediate return. rather than investing in pensions -- >> that's how they grow their business and hire more people. >> that's a short-term plan. even the ceo of blackhawk says
this is not a smart solution for corporations to think about the long-term. they need to be investing in long-term plans as they create a bubble. who are the first people to suffer? the employees are the first ones to suffer. and the shareholders are only concerned about making some profit. on the backs of the americans who are working off of nothing right now, and they are suffering. >> john an economics lesson please. >> yeah how about a shell and game lesson as well? look the smoke a is not the shareholder. the shareholders are in this to make money. they are not in this for alteristic reasons. the unions are in this for 100% survival. you talk about the shell game here. the unions spent $5.9 million. get this for hypocrisy, of union dues to lobby the government to pass the multi-employee pension reform act. which means they can now cut pension benefits.
so they took pension money, i'm sorry, they took union money so they could cut union benefits. so what they want to do is get away from that. the central state pension that runs a $2 billion annual shortfall. they are dying here. they have no money. they want a shell game and put all the heat back on mcdonald's, back on walmart, get it to themselves for about $15 an hour. they don't want to talk about themselves because they are drying. >> i want to get to everyone but naomi, respond to that. >> that was a result of compromise. they went to lobby congress which is to effectively get change and didn't get what they wanted. so they have a compromise and the compromise was they didn't get everything they wanted. the result of lobbying is that you have two parties that come together and one party usually wins out a little bit more. >> gary b.? >> well, a couple points with all due respect to naomi, if only henry ford had naomi around advise him on how to run a
business the world would be a better place if the left just told andrew carnegie and the rockefellers this is really how you should run your business. don't worry about that profit stuff. i mean that's idiotic. you should build it into pensions. i mean one, it's not the left's place. however well intended they are to tell businesses how to unare. getting back to the point about the union, suzy has it right. this is a shell game as john implied. in fact it is interesting that unions aren't out there busting their chops to get people to use more money. they are to get non-union people money. what's the end game there? they look good it's great p.r. look how wonderful the unions are. join us increase our coffers. two, by raising the rates of non-union member they in fact take mare union members more competitive. why would you now hire what used to be a $10 person that is $15
when you can just get a union person? so john said it's a shell game and it makes the unions look good but i'm sure the left will tell us exactly how business will be run in the future. >> okay. jonas, union membership has been plummeting. there's no question about this. do you think that they're basically trying too boost their membership here? >> they are trying to change their brand. like the public doesn't support most union workers. they are paid well, they already got a lot of benefits. people are mad states are going broke paying high pensions. the minimum wage worker actually most people fall by -- they believe there should be a higher minimum wage. we can debate the negatives in the economy, which there are in raising in but that's what the public supports. it is not for the pension union guy who gets to take long lunch breaks in the oil industry and cause problems in the industry. so they are jumping on this. they don't care about minimum wage workers. if there was a $50 minimum wage who would join the union and pay dues? you already got your $50 an hour. they are on it to make the brand
themselves and look better that the public also cares for, buzz because they don't care about the teachers and the other sector union employees. >> they will have nice big union unions with memberships and then we won't have any jobs. we just can't go this way with protests. >> andrew carnegie, he made ten times as much as hi average employee. now the ceo makes 300 times as much of their employee. so this is a real problem here. i don't think it has anything to do with unions but it's a complicated conspiracy theory you are proposing. the reality is unions have a job and membership is being lost. but they are lost to overseas jobs. ceos want cheap labor and will get it anywhere they can get it. >> john? >> that's a ridiculous argument.
you can compare a-rod's salary to the hot dog vendor at yankee stadium. they bring in revenue in complete different fashion. that argument doesn't hold water on any level whatsoever. look mcdonald's say that they will pay a whole dollar more than minimum wage. they said they are now going to allow paid leave for those that didn't have it before. people say, wait a minute just like jonas said, we were just kidding about $10 an hour we meant $15. they don't want it fixed because it's a way to recruit. politicians don't want it fixed because it's a way to get re-elected. this is not about $15 but union membership and politicians getting reelected. >> if it were about union membership then we would have -- >> gary b., i want to get you in here the majority of employers this summer are going to be offering jobs that are more than the $15 an hour. why don't the mcdonald's workers go there to work?
>> that is an exact point that the left needs to know. you know naomi is talking and she just represents the left. we love naomi on the show of course but she's talking like we just have this one big standard oil. and this one big u.s. steel. and if you don't work for either of those two companies, you're out there with the grapes of wrath in the dust bowl for crying out loud. you're right, brenda yes, of course the employers want cheap labor. they want cheap everything into their production line. and they can get it. if the employee doesn't want to work for walmart, they can go somewhere else to work. it's not like every town out there is just like the one company town. you don't work for that company, you're destitute. >> actually walmart has wiped out small businesses in towns. >> naomi, you have 30 seconds. >> actually when walmart came into the town with a globalized economy, they killed all the small businesses so really there are only one or two jobs
available in those towns. >>. why did they kill the small businesses? because the small businesses couldn't compete! >> against walmart, of course! >> that's the last word. >> who benefited? the people! >> that's another debate. thank you. "cavuto on business" in a few minutes. what do you got? >> they may want to reshuffle the deck but are they restacking the deck against all of us? and lawmakers joining the wage rage saying they deserve a pay hike. and someone here actually agrees. get ready for that debate. see you at the bottom of the hour. >> thank you, neil. we can't wait. but up here first, american wallets getting grilled this holiday weekend. so what is excellent.
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"american news headquarters." join us. household budgets getting burned this the moral day weekend. memorial day weekend. with prices spiking on everything going on the grill, but it is not just food. electric bills, movie tickets, hotel rooms, all up. maybe that's why many americans aren't banking all the money they have been saving at the pump. four in ten say they're spending it on me testiesy necessities like groceries. john what are the reasons for that? >> a politician taking credit for gas prices being down is like fled flinstone taking credit for the cartoon.
beef prices are up 11%, corn up 14%. electricity up 3.8%. prescriptions up 5.6%. all these things hit the ordinary family out there. all of us. the guys in d.c. they live in taxpayer-funded houses and get taxpayer cars and taxpayer food on our bill. real people have to deal with this. thank goodness that gas prices are low because there is a squeeze out there. >> gary b. you're not too worried. >> i am not. we've had this discussion a number of times, brenda. i am a not inflation kind of guy. i do think that prices have gone up in some areas. and those are the kind of the highlighted areas we talked about. but it's not like gas is just going down a little. gas is down like 33%. that is a big part of people's budget. so if you want to focus on just food yes, food prices have gone up. but even food is down. so beef has gone up food has gone down. so you have two things you either believe the government's
numbers, that there really is no inflation. if we talk basket of goods, or you say there's a conspiracy theory. i choose in this case to believe the government. >> there might be a middle ground. suzy you have been traveling all over the world for your best-selling book tour. what are people telling you? >> this is a tale of two cities or a tale of two regions. we have been to 21 cities and really we hear two starkly different stories. when you are in the midwest, people say it's hard out here. it's rough. i can't make ends meet. it's tough. what recovery? there's no recovery. then to the southwest coast, it's like 2007. it's go go go. i could have 15 jobs tomorrow. they are in a totally different reality out there, especially in silicon valley or in texas, despite the oil. and so really what you've got are two different realities of people saying yeah the recession is over and people still saying we are still in the recession. so when you have two different realities in the same country, you'll have politicians using it to their advantage depending on
what party they are in and nothing is going to happen because people are talking right past each other. >> naomi? >> i think suzy is absolutely right here. technically our economy is great. we are hitting higher profit margins than we have and more billionaires joining the billionaires club. but those making under $75,000 have no money, no discretionary income to invest to go to movies or on vacation. this is a real problem in america, especially when income inequality is so vast when it costs you $3,000 a month to have an apartment in new york. this is a big problem. where are you going to be able to find the income to support your family? we do have a tale of two cities in america. >> jonas? >> we have a tale of one price index. and i will say i was a good figure this week because the one from a few months ago was negative. if you look back it is not bad to have a little inflation. you don't want deflation. if it is such a great thing, move to europe where prices are going down all the time to cause
chaos. you want prices to go up 1% to 2% a year on average. not go down or stay the same even though psychologically that seems like a sale. it's a sale on the way to a recession you don't want to have because you can't get out of it. we should be optimistic. it's getting better not worse. >> john last word? >> there are pockets of prosperity. while you look to the middle of the country that has plenty of jobs you look at parts that don't and we are seeing pressure on middle-income families around the country. and it is specifically because of the things they buy every day. >> all right. thank you, guys. cashing in just over an hour from now, eric what do you guys have coming up? >> federal food aid programs handing out more than $100 billion last year. now one state is cutting off benefits after one year. it's controversial. but is it necessary to save the taxpayer? and the white house says it's isis strategy is working as the terror group takes over more territory. while we all may pay the price for that strategy.
"cashin' in" at 11:30 a.m. eastern. more americans are planning holiday trips this memorial day weekend and summer. and some are about to get slammed for a tax for each mile they drive. can't get enough of neil? starting june 1st on the fox business network he's on another two hours. and starting june 1st, "cavuto coast to coast" will be on from 12:00 to 2:00 p.m. see gary ludman on how to get the economy surging. and what better way to kickoff summer than with suzanne somers who says keep on moving. neil cavuto the number one name in business and now shaking
a promise that hit the beaches of normandy. a vow that captured iwo jima. a contract that weathered tet. a pledge that stormed the desert in iraq. an iou that braved ieds in kandahar. a promise was made. to america's veterans. dav fights to keep that promise. so all veterans and their families get the benefits and support they earned. for help, visit dav.org.
nearly 30 million americans will hit the road this weekend but what if i told you soon those miles will cost you. as lawmakers push for a mileage tax to replace the gas tax, oregon is launching a pilot program that will do just that. taxing each mile you drive just over a penny. suzy a mileage tax better than a gas tax? >> i'm surprised in oregon my birthplace they do wacky, crazy things in oregon but this is the most surprising to me in a long time. i think you're taxing the wrong people. it is very regressive. people who live far out of the city because they can't afford to live closer to the city will be taxed and middle-class people
who drive for their vacations instead of the wealthy who fly to their vacations will get nailed by it. let alone the logistics of figuring this out. oregon i thought i couldn't be surprised by you but i was surprised by you this time. >> gary b. are we surprised by you? >> i'm surprised by suzy shocked, as a matter of fact. loyal, good freedom fighting american against something so capitalistic like this this is perfect! where in america don't you pay for something you use? if you use something a lot, you should pay more. look i feel badly if someone lives way outside the city but then choose public transportation. choose to live closer. this is the way to go. we have the technology. it should be on every road in america. >> okay john you agree? >> very rarely do i disagree with gary b. but gary b. is not wrong very often. so -- look here's the problem. you cannot trust politicians with money, surprise surprise. the lottery was sold in the south. they are going to use it to fund
schools. it went to the general fund. the gas tax, 40% goes to special projects. we actually had money to fund infrastructure. it's not being used. a gas tax is regressive and punishing the hybrids and the electric vehicles, which is exactly opposite. in my opinion, of what you would like to do. >> naomi, are you a bull or bear here? >> i'm agreeing with everybody but gary right now. let's look at if this is a fair game who is wearing and tearing the roads? it's the commercial vehicles and the corporations. so why aren't they getting taxed? no but that's a revenue source here. why is the middle income earner having to pay the taxes for the corporations to drive their big trucks when we could be you know investing in small businesses and local economies. see, you guys don't agree with me. >> okay jonas? >> obviously between now and the future we have flying cars like in "back to the future" with banana peels in the future machine. we have to tax something besides gasoline to pay for the roads and/or signs in the sky.
and eventually we have to switch the system so we should start to look into it now. however, you will kill the electric car industry if you start too soon. so we should tax the gas and then switch to the miles in a few years. >> okay take a breath. all right, thanks guys. thank you, naomi for joining us. we really do love you. watch out ramon in the battle of who's dog is smarter? suzy's dog happy is on your tail. ramon versus happy, next.
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predictions, gary b. what do you got? >> i like conagra up 20% by the end of the year. >> jonas, bull or bear. >> bear. >> john your prediction? >> rocking chairs and southern food. can't beat up. cracker barrel up 20%. >> bull or bear? >> bear. bet john has never eaten there! >> okay. jonas, your prediction? >> they are teaching dogs to use the ipad in the city. and ramon is getting ready to shop at overstock which is big on pets and has a donation on their site to donate to dogs like ramon. >> suzy what about happy? >> ramon may be shopping but happy is an intellectual type. here she's watching reruns of "bulls and bears" and does "the new york times" crossword puzzle
on her ipad. so ramon can shop all he wants but happy is more an intellectual person. >> who is smarter? happy or ramon? #bullsandbears. we'll be counting the votes. neil is next. well, remember to spread the wealth around. don't look now, but these guys are bringing it back around. >> most americans understand that the deck is stacked for those at the top. and i am running a campaign that is very clearly stating we want to reshuffle that deck. we want to get back to having more opportunities for more people so that they can make more out of their own lives. and i think that's exactly what america is looking for. >> at a time when trillions of dollars in wealth have been shifted from the middle class of working families of this country to the top 1/10 of 1%. >> this legislation would impose the speculation fee on wall street investment houses and hedge funds.